Zerodha's Nithin Kamath reacts on Budget 2024: ‘May cool down stock markets’
Union Budget 2024: Nithin Kamath warns of increased market activity cooling due to tax changes
Zerodha founder and CEO Nithin Kamath said that the changes announced in the Budget 2024 by Union finance minister Nirmala Sitharaman in tax rates for the stock trading could cool down market activity.
What are the changes that Nithin Kamath referred to?
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In the Budget, the finance minister proposed to hike the rates of Securities transaction tax (STT) on the sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium and on the sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded from October 1.
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What Nithin Kamath said on the Budget?
"We collected about ₹1,500 crore of STT last year, @zerodhaonline. If the volumes don't drop, this will increase to about ₹2,500 crores at the new rates," Kamath said.
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He added, "The capital gains tax has been increased from 10 percent to 12.5 percent, and it will apply from today. If the idea was to cool down the activity in the markets, this might just do the trick."